EU, Asean to revive free trade talks
The European Union (EU) and the Asean are preparing to go back to the negotiating table for a regional trade agreement amidst growing concerns of protectionism.
The EU trade commissioner, Cecilia Malström, and the Asean Economic Ministers (AEM) made this announcement in a joint press conference yesterday, reviving interest in the regional approach after setting it aside nearly a decade ago.
Asean Chair and Trade Secretary Ramon M. Lopez said both blocs had agreed to come up with a framework for the free trade agreement (FTA). However, there is still no definite timeline for the trade talks.
“In order to reinforce the momentum, the AEM and EU Trade Commissioner tasked the senior economic officials to develop a framework encompassing the parameters of a future Asean and EU FTA and to report back in the next AEM and EU trade commissioner consultations,” said Lopez.
The intent to resume talks comes a few months after US President Donald Trump pulled out of the Trans-Pacific Partnership (TPP)—a timing which Lopez described as nothing more than a “coincidence.”
The hole that would be left behind by a TPP that was deemed dead without US participation would provide momentum for the EU-Asean FTA, especially since four Asean member-states—Brunei, Malaysia, Singapore and Vietnam—were supposed to be part of the US-led mega trade deal.
In 2009, negotiations for the EU-Asean FTA were suspended to make way for bilateral talks between EU and individual Asean member-states. Moving forward, Malström said the ongoing bilateral trade talks would “compliment” the future region-to-region arrangement.
Having already completed a trade deal with some countries in the Asean, the EU recently finished the second round of negotiations for the EU-Philippines FTA earlier this year.
Lopez later explained that this would mean Philippine products would now benefit from a wider manufacturing capacity, since products that use raw materials from Asean member states would benefit under the regional agreement with the EU.
In the EU-Asean Business summit, Malström said the intent to do region-to-region talks marks as a “significant step forward” that would open access between markets at a time that more trade policies are becoming inward.
“My message is simple. The EU is ready to commit to great cooperation and closer relations with Asean and its individual members. If other doors are closing, ours would stay open,” she said.
